Although gold is renowned as a safe-haven asset, its price has plummeted since the outbreak of the Middle East war, erasing almost all gains for 2026 after reaching a historical high. This is why, amid rising global economic uncertainty, gold prices are falling. The urgent need for cash due to the uncertainty of the Middle East conflict has prompted investors to quickly sell off assets to raise cash and offset losses in other areas. Scope Markets' chief market analyst Joshua Mahony stated, "Given the scale of the rebound over the past year," they first turned to sell gold. By liquidating gold and its sister metal silver, investors can obtain dollars for trading oil and other energy products. Oil prices have surged due to the closure of the critical Strait of Hormuz and attacks on Gulf energy infrastructure. Earlier this year, due to U.S. President Donald Trump's tariff offensives and the geopolitical tensions caused by the wars in Ukraine and Gaza, gold is currently trading at around $4,550 per ounce. Concerns over rising public debt in major economies and the bubble risk in the artificial intelligence industry have led investors to flock to precious metals. Silver is currently trading at about $73 per ounce, having peaked above $120 two months ago.
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